The Bitcoin price has fallen below $5,000 for the first time in the year 2018 as the crypto market remains to plunge.
The Bitcoin price dropped as deep as $4,754 Monday, noting a 14% decrease in a 24-hour span. Bitcoin price has been declining since the start of the year but it has now collapsed by more than 21% in the last week. On Monday, it dropped as low as $4,712 the lowest position since May 2017. The following image is showing the yearly chart of Bitcoin. At the time of writing this article, according to Coinlib, the current Bitcoin price is $ 4,413.90
Other influential cryptocurrencies ethereum and XRP declined by 12% and 4% respectively. Bitcoin started falling last week after months of pertinent stillness. The price had been running in the $6,400 range in the month of October 2018. It started trading on Wednesday at $6,328.
Crypto Civil War and Bitcoin Price
The reason behind this decline is not completely clear and analysts have struggled to grasp what exactly instigated the latest upset. Some analysts have blamed the fresh Bitcoin Cash hard fork for declining prices of cryptocurrencies. Brian Kelly, founder, and CEO of cryptocurrency investment firm BKCM, said last week that the market is experiencing a “crypto civil war, reported NEWSBTC.
When you do a software upgrade, everybody usually agrees. But in this particular case, everybody is not agreeing. So, we’ve got ourselves a ‘crypto civil war people started selling. That triggered stops. Everybody got concerned. And that’s what happened today — the entire market sell-down.
The two variants of Bitcoin Cash, identified as ABC and SV, have battled against one another for sovereignty by endeavoring to draw the most computing power. This competition may have reduced computing power of Bitcoin itself, thus decreasing the recognized demand for the first cryptocurrency.
Andreas M. Antonopoulos, a critically-acclaimed author, speaker, educator, and one of the world’s foremost bitcoin and open blockchain experts asked people to not to criticize each others’ choices. He tweeted
Whatever your reason for being in crypto, now is the time for:
Lot's of people have lost lots of money recently and it is not helpful to make empty promises, share shitty memes, or criticize others' choices. #bekindorshutup
— Andreas ☮ 🌈 ⚛ ⚖ 🌐 📡 📖 📹 🔑 🛩 (@aantonop) November 19, 2018
Just after the hard fork, both ABC and SV battled to gain dominance over the system by acquiring the hash power. Before that, Bitcoin ABC had 61% hash rate while Bitcoin SV had 39%. As soon as the hard fork was live, Bitcoin ABC got the initial lead in block mining. Not only this, the legitimacy, price, volume and total market cap of cryptocurrencies depend on any country’s leading provider of banking systems. There are several factors such as approvals of various sections like SEC and what regulators think. Crypto market tends to react rapidly to any decisions regarding cryptocurrency regulation.
In the month of January 2018, the Bitcoin price was almost $18,000. However, in the month of February 2018, it dove 55% following the previous month’s hike and its price was almost $10000. The fluctuation in Bitcoin’s price comes as a reminder to enthusiasts to show just how volatile and high risk this crypto world is, and that people should always check all the parameters carefully before diving into this world.
Bitcoin’s price has been fluctuating around two SMAs. There are two territories. The distribution territories are $7,500, $8,500 and $9,500 and accumulation territories are $6,000, $5,000 and $4,000. There has been a pattern of lower highs and lower lows in Bitcoin’s price over the past 3-4 months. Performance wise Bitcoin is still the number one cryptocurrency. One year days ago its ATH( all-time high) value was at $19812.12 and since then it has been decreased by almost 70%. In the month of October, its relative strength index was 48.78 while its commodity channel index was 45.88.
Bitcoin has now declined for eight back-to-back days, the longest slide in the history. Competitors such as ethereum, the second most successful cryptocurrency, have also decreased in value.
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